This blog provides up-to-date information and analysis on the world of cryptocurrency, with a focus on Ethereum and Bitcoin. Stay informed on the latest news and trends in the crypto market.
Note: Information provided here is for educational purposes only and should not be taken as financial advice.
Yesterday, Bitcoin price ranged between 23250-23500. The good sign is that the price is bouncing from local support zone (demand), but its forming lower highs. The price is forming some kind of descending triangle, which is usually trend continuation indicator. As we can see, the price is bullish on 1h time frame (the price is forming higher highs and higher lows, excluding last 2 days).
From technical point of view, descending triangle is trend continuation (as i mentioned), which means, if the price breaks it out, we could see about 2% upside move (usually measures the percentage movement from the top to the bottom). Its likely to happen tomorrow (i dont expect volatility today, because its weekend as i mentioned yesterday). From fundamental point of view, there is no major changes. The next week is important for the market, because Jerome Powell will speak (he released on FOMC conference). This is scheduled for the 7 February.
Volume profile is looking good. There is only one volume gap between 23222-23310, but if the price continues to range, this volume gap will be filled soon. POC is sitting at 23100; The plan for today: I will wait for the break out/down on descending triangle pattern. If the price breaks it out + retest=>long; If the price closes below it and rejects it=>short; Keep in mind that local support zone is sitting closely, and we could see bounce from this zone (as it is strong support zone).
Another idea for scalping: if you want to scalp this descending triangle, you can short the top of the triangle (if the price rejects it) and long the bottom of the triangle (if the price bounces from it). This is a scalping idea.
ETH price broke down a local support level (yellow line) and it looks like the price is respecting it as resistance right now. We can see ETH is still outperforming BTC as i mentioned yesterday, which is interesting. The price made about 2% move yesterday, which is good movement for the weekend (usually we dont see volatility during weekends, because there is not enough volume).
From technical point of view, the price broke down a local support and now its respecting it as resistance (as i mentioned above). If we see more trading interest around this level, the price will break it out again. Another important thing to mention here is if the price manages to hold 1660ish, we could see 1800ish next week, which is good. If the price lose this level (1660ish), this will invalidate this idea. From fundamental point of view, there is no major changes. Volume profile is looking good. There are 3 volume gaps around a current price: 1597-1606; 1623-1633; 1649-1657; POC is sitting at 1584;
The plan for today: Current price is sitting closely to local resistance (right now its reacting as resistance, as i mentioned above); If the price closes below it (after another retest) and rejects it=>short; If the price breaks it out + retest=>long; Another great level to watch for price action is VAH (blue line-1647). VAH is reacting as support, so if the price retests it and bounces=>long; if the price breaks it down and rejects it=>short;